Secured Loans and the CCA1974

[MW2]

Hi can i ask if a secured loan on a property still falls under the CCA1974

[citizenB]

I think loans under £25,000 are.. But I will check for you.

[MW2]

So what covers you on loans above that amount?

[citizenB]

It would appear that from 6th April 2008, loans over £25,000 are now covered by the Consumer Credit Act 2006. Unless they are exempt for either of the following reasons.

 

the debtor has a high net worth; or

it is a business loan exceeding £25,000

 

HTH

[MW2]

Oh well thought i might be in for a little windfall regarding the statement fiasco that Tesco find themselves in.

[citizenB]

Ah right

[Peterbard]

I am fairly sure that the statement regs will be applicable to those agreements which come into regulation due to th raising of te financial limit, at least for th statements issued after 2008

[MW2]

I've had a secured loan for over 6 years now and never had 1 statement

[citizenB]

I've had a secured loan for over 6 years now and never had 1 statement

 

You should have received at least one statement every year.

[citizenB]

http://www.legislation.gov.uk/ukpga/2006/14/contents

 

My understanding is....

 

 

Consumer credit statements: required information

 

Required statement

 

Section 6 of the Consumer Credit Act 2006 inserts a new section (s77A) whereby a statement must be provided if the agreement is a fixed sum credit agreement under section 77A. The statement should explain the money borrowed, money paid, interest in all cases and the outstanding amount.

 

Particulars

 

The creditor under a regulated agreement for fixed sum credit:

 

shall (with in the period of one year beginning with the day after the day on which the agreement is made), give the debtor a statement under this section; and

 

after the giving of that statement, shall give the debtor further statements under this section at intervals of not more than one year.

 

Failure to provide the statement

 

If the creditor fails to give the debtor an annual statement, then he is not entitled to enforce the agreement during the period of his noncompliance and the debtor is not liable to pay any interest during this period.

 

The debtor is also not liable to pay any default sum that would have become payable during the period of non-compliance or would have become payable after the end of that period in connection with a breach of the agreement occurring during that period. However a creditor will not be required to give the debtor an annual statement if there is no further sums payable under the agreement.

 

Further provisions relating to running account credit agreements

 

Section 7 of CCA 2006 inserts a new section (78(4A) of the 1974 Act) which requires creditors to issue further statements to debtors setting out specified information in respect of running account credit agreements.

 

The statements must be provided at intervals of not more than 12 months. Creditors may further be required to include specified information about the consequence of failing to make repayments, or only making minimum repayments.

 

 

[kazma]

Would this apply to loans over £25000 which where taken out prior to 2008. We took out a secured loan in April 2007 for over £25000 and have never received a statementK

[Peterbard]

Would this apply to loans over £25000 which where taken out prior to 2008. We took out a secured loan in April 2007 for over £25000 and have never received a statementK

 

es as long as it is a second charge, the requirement would kick in in october 2008.

[MW2]

So i should of received a statement on this loan even though its for over the 25000? So in effect the company my loan is with are in as much trouble as tesco?

[MW2]

Well i might fire of a letter anyway and see if i get a response.

[Peterbard]

certainly this was the scenario with Northern Rock

[MW2]

Well that's who mine was with

[Peterbard]

Well that's who mine was with

 

http://goughsq.co.uk/high-court-judgment-agreements-wrongly-drafted-regulated/

[MW2]

Sorry my mistake it was with picture

[MW2]

Nearly a week ago i sent the letter does somebody have an address it should go to for webb resolutions please to make sure i sent it to the correct place.

[citizenB]

Did you obtain proof of posting or send it via a tracked method ?

[MW2]

No but i will do with the next one,if they dont reply what would be my next step?

[citizenB]

No but i will do with the next one,if they dont reply what would be my next step?

 

Well I don't think a week is sufficient time for them to respond (especially just after a Bank Holiday as the RM will be catching up with post) so give it a few more days and if you don't receive a response, send a follow up letter but send it tracked so you know it has been received.

[MW2]

I think they are ignoring me so will send again this time signed for.

[MW2]

No reply so another letter going off,but looking on the internet for an address a company called Lapithus pops up claiming to be working on behalf of webb resolutions so im assuming i contact them.

[MW2]

Just phoned laithus and they have nothing on their system regarding picture loan customers? and nothing in my name? If idem was servicing the loan would they direct debit be in their name as it still shows as webb resolutions?